Share on facebook
Share on linkedin
Share on twitter
Share on facebook
Share on linkedin
Share on twitter

How AI Makes the Finance Sector More Customer-Oriented

The financial services industry is ready for the digital era. Traditionally slow to change, the industry – covering banking, investment and insurance – has already started its digital transition, from building digital platforms for its products, to offering chatbots to field customer queries. Predictions estimate the Asia-Pacific fintech market will be worth US$72 billion by 2020.

There is a divide, however, between the approach newcomers take – ‘born digital’ disruptors and challengers like Baidu, Tencent and Grab – and that of incumbent organizations. What the disruptors know is how to build a system that is customer-first rather than product-first. While traditional finance organizations have access to plenty of data, from application forms to transactions, the born digital services have access to customer data from different digital touchpoints, creating a full picture of customers’ interests and behavior. This suits the new marketing paradigm of providing a more personalized experience. 

Customers have always wanted to make educated decisions about their money, and information that is timely, relevant, trustworthy and accessible is the key. It is now possible for the financial services sector to support them through better marketing.

 

Asia Leads the World

The five biggest banks in the world are located in Asia and the banking market in emerging Asia-Pacific countries is the fastest growing in the world. Early adopters include China and India, where mistrust due to counterfeit banknotes hastened the uptake of cashless payment systems. Other countries such as Japan and Malaysia have made digital payments part of government and national bank policy.

Less mature markets like the Philippines, where fewer than 35 percent of people over the age of 15 have a bank account, are also ripe for digital transformation, bypassing traditional financial institutions and opening the market to digital-only lenders, including peer-to-peer services like Funding Societies and CreditEase.

The uptake of digital payment systems gives financial institutions and challenger service platforms unprecedented data about their customers. For finance marketers, the ability to find actionable insights – patterns in the data to determine likely clients and predict their behavior – will place them at an advantage. This is where artificial intelligence (AI) shines; already more than 30 percent of financial institutions in Asia believe AI and chatbots will be a game-changing technology that will shape the industry over the next 12-18 months.

 

AI Can Help Finance Get Personal

For the finance sector, data sources include both customers’ financial transactions and their online browsing information. Use an AI-powered data science platform to combine historical data, such as transactions, previous campaign results and past user behavior, in a single view to show patterns of customers’ cross-screen behavior. Leveraging extra data from external websites, marketers can also use AI to discover customers’ external interests and intent for precise segmentation, in order target them in a predictive way.

In addition, advanced AI models helps track, unify and analyze cross-screen behavior across multiple devices to identify potential customers. Consider a user who checked out a webinar of an entrepreneur. Later that day he searched for commercial properties to lease. The data would indicate that he could be a prospect for a small business lender. 

Matching campaigns with customer readiness also gives marketers better return on investment. With an intimate knowledge of the purchase cycle, AI can pinpoint where a customer is and deploy the right message at the right time. A customer in the research stage to apply for a mortgage will appreciate a content marketing push, whereas a customer comparing specific insurance products is more likely to interact with a chatbot to confirm details and apply.

The increasing digitization of the financial services sector and the increasing convergence of technology platforms offer marketers a huge data landscape to traverse. AI tools support marketers with predictive intelligence to create a comprehensive understanding of their customers and prospects. Marketers can then target the right people with the right campaign at the right stage in the purchase cycle. Combined, AI functions like this will generate US$2.1 trillion in business value by 2021. Have you taken this golden opportunity yet?

 

* More in-depth insights in our latest white paper ‘Predict Customer Behavior in Financial Services: How Artificial Intelligence and Data Science Enable Better Marketing and Higher ROI’. Download now to find out how AI can help financial institutions analyze data, make precise predictions and offer insights that enable them to create a more effective marketing strategy and campaigns.

WE ARE HERE TO HELP

Let us know the marketing challenges that you’re facing, and how you want to improve your marketing strategy.

YOU MIGHT ALSO LIKE

Ask the Experts: General Assembly’s Aziza Sheerin on Upskilling for Digital Transformation

Aziza Sheerin, Regional Director for General Assembly, recently spoke to us about technology skills required for driving digital transformation, and how people can apply those in their organizations.   Can you tell us a bit about your role at General Assembly and what GA does? General Assembly started out in 2011 in New York City, and we’ve now scaled to more than 32 cities across 4 continents. GA enables individuals and enterprises to acquire today’s most in-demand skills in areas such as data science, digital marketing, software engineering, user experience design, and product management. We want to make the future work for everyone. I joined GA five years ago as the first person on the ground in Singapore. I’m responsible for growth, strategic partnerships, and operations in this region.   Many people want to gain technical skills to stay relevant to their employers, and employers want to accelerate digital transformation by having more people with technology skills. There’s discussion and evidence that businesses are accelerating digital transformation due to the pandemic. Are you seeing this reflected in requests from both individuals and organizations? We’ve seen interesting shifts happen during this period as a result of the pandemic, both by employers

A Beginner’s Guide to Deep Reinforcement Learning

The game of Go has simple rules but complex play. Each turn, a player has something in the vicinity of 2 x 10170 board positions to consider. Experienced players learn what is likely to work by trial and error over years of play in a process known as reinforcement learning. So what do you get when you give artificial intelligence (AI) the data from thousands of games between professional Go players? AI that beats the top-ranked human Go player – AlphaGo. That is deep learning in action. But what if instead you teach AI the rules of Go and let it play millions of games between itself? Deep reinforcement learning enables AI to teach itself by creating its own data (the millions of games) and analyzing the moves to arrive at the best one. Like a learning human, AI adjusts its responses according to failure or success to improve the outcome. It just does it at a scale and speed well beyond human capability. Deep reinforcement learning needs to work inside a structure. This takes into account the context of the environment – whether that is the rules of Go, or the market in the case of your campaign –

Maximize App Engagement With Push Notifications (Industry Examples Included)

Having high app downloads is not much good if your customers don’t use your app. Thankfully, you can increase your app engagement and help your brand play a bigger part in your customers’ lives through the judicious use of app push notifications.    The State of App Engagement There has been an explosion in demands for mobile apps in recent years, and global consumer spending reached US$120 billion on apps — a figure that is up 2.1x from 2016.  Consumers love apps, as do brands. It is a great way to meet your customers’ needs and because they are on mobile devices, your customers can engage with your brand wherever they are. However, to give your customers a reason to stick with your app, you need to craft your app engagement strategy carefully, and push notifications can be a great way to remind them about your app and what you have to offer.   Why Use Personalized Push Notifications? As a marketer, push notifications can be your greatest asset or your worst enemy. Using them correctly offers you a fantastic way to engage your users with personalized, timely promotions that increase their level of engagement with your brand. However, misuse